Canada is one of the most popular countries for immigration. In light of a possible Trump presidency, more and more people are threatening to leave the US for Canada. Still, there are also over 1.5 million Canadians living and working abroad.
As with most expats who work abroad, Canadians need to understand the laws concerning taxation on their foreign-earned income.
Canada is a little more moderate than the United States when it comes to taxing its offshore citizens and residents. In fact, Canadian tax courts are known to be more flexible. During the contestation process they consider each case on its individual merits.
Canada uses a “hybrid tax system“, a combination of territorial taxation and taxing on worldwide income. Consequently, it is important to understand the nuances of the system. While most Canadians expect to be taxed on their worldwide income, there are exceptions.
For instance, consider the story of David, a foreign-born Canadian resident who had to return to his home country to take care of his aging parents. While his immediate family lived in Canada, David lived abroad to see after the daily needs of his parents. While living in his country of citizenship, David took on a part time job. And — even though he earned his income abroad — he paid Canadian income taxes each year.
One day, however, his wife read an article from the local Canadian expat community. The article explained that, in some cases, income earned abroad could qualify for Canadian tax exemptions. To make a long story short, their situation was one of those cases and David was able to exempt his foreign-earned income.
more recommended stories
Police rape allegations fuel protests in Mexico City
A recent string of alleged police.
Mexican berries exported to China
After having reached exports amounting to.
Querida Familia Latina, the letter of solidarity from Latinx leaders
Actresses America Ferrera and Eva Longoria.
AMLO places his name on Mexico’s public school’s fifth-grade History Books
Mexican President Andrés Manuel López Obrador.
Hurricanes are named after HURACÁN the Mayan god of wind, fire, and storms
When he becomes furious, nobody can.
Would you like to know all about the ‘Yucatan Green Gold Era’ ?
Sotuta de Peón, once one of.
Real Estate company from Monterrey to invest 254.3 million USD in Mérida
The Monterrey company ‘Misión Obispado’ will.
Teotihuacán, the secrets buried in the ancient underworld
Mexican archaeologist Sergio Gómez discovered the.
AMLO opposes prosecuting Mexican ex-presidents
Mexico President Andrés Manuel López Obrador.
Mexico does not want El Paso shooter executed
President Andres Manuel Lopez Obrador declared.